Woolworths, Coles told it’s not just the prices, stupid
Supermarket giants Woolworths and Coles have poured big money into cutting prices to fend off challenger Aldi, but have not paid enough attention to service levels and the appearance of stores, a pricing expert says.
Woolworths has spent about $1 billion on reducing prices over the past two years, and Coles’ owner Wesfarmers invested more into price last quarter than it ever had.
The price cuts were not enough to put their prices within a cooee of US chain Costco, according to investment bank Morgan Stanley.
But Christoph Petzoldt, partner and managing director at pricing consultancy Simon-Kucher, said price was not the be-all and end-all. Sydney Morning Herald – Read more…